President-elect Barack Obama has addressed the nation regarding the urgency of the economic situation. As soon as he takes office in less than two weeks, Obama is introducing an economic stimulus package in the neighborhood of $700 billion. He does not dispute that the package is deficit-spending on the government’s end, but he has reiterated that the private sector and struggling families need the money. He wants to make those funds available to them through a plan that includes a $25 billion public-works project that will build roads, bridges and even stadiums.
Here are some of the notables from the proposed stimulus package:
For job creation ...
- $3,000 tax credit to businesses for each new hire
- Provide automakers’ loan guarantees up to $50 billion for the creation of fuel-efficient cars
- Eliminate capital-gains tax on small-business investors
- $25 billion public-works project
For families ...
- Immediately cut taxes by $500 for individuals and $1,000 for families
- Eliminate taxes for seniors earning less than $50,000. Mail stimulus checks during the first quarter of 2009
- Extend unemployment allowances to states and temporarily suspend federal income tax on unemployment
- Allow penalty-free, 15-percent withdrawals—up to $1,000—from individual retirement accounts
For more details on other components of the proposed stimulus, read the full article.
Source:
About.com – U.S. Economy: Obama’s Economic Stimulus Plan
